Auto conglomerates attracting fresh longs in June series: Angel Broking

The benchmark index recouped Tuesday’s losses as it opened with an upside gap on the back of positive global clues. Post some consolidation during the day, fresh buying interest emerged once RBI Policy was announced, which resulted Nifty closing at 9663.90. 

On derivatives front, Nifty futures open interest increased by 2.03%; while, BankNifty futures open interest activity remained muted. Nifty50 constituents like M&M, Maruti Suzuki and Hero MotoCorp added fresh long positions. On the flip side, shorting was seen in TCS, Wipro, BPCL and Tech Mahindra.

Now, if we look at Nifty’s options activity, we hardly find any meaningful activity in call option. However, we witnessed highest open interest addition in 9,600 put options followed by some build-up in 9,400 and 9,700 puts. Maximum open interest concentration in June series is now placed at 9,700 call and 9,500 put option.

Nifty June futures closed with a premium of 16 points against the discount of 0.90 points last week (Friday), suggesting some buying interest emerging in the benchmark index this week. In today session, FIIs activity remained subdued in F&O space. However, longs formed in Index Futures since last series are still in system. 

Considering above data points, we don’t see any signs of reversal yet. Thus, we would suggest traders to focus on individual stocks with a positive bias in order to fetch higher returns.

Disclaimer: The author is a derivative analyst with Angel Broking. The views expressed are her own